Econ 101 (ch. 9).txt

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A firm with explicit costs of $2,000,000, no implicit costs, and total revenue of $3,000,000 would have:
A. a higher accounting profit then economic profitB. an accounting profit and an economic profit of $1,000,000
C. a higher economic profit than an accounting profit
D. zero accounting profit
E. zero ecnomic profit

B. an accounting profit and an economic profit of $1,000,000

(this multiple choice question has been scrambled)

At which outpout is the firm operating most efficiently?

Where MC = ATC

The marginal cost curve intersects the ATC curve at itsA. minimum point, which is the break-even point
B. maximum point, which is the shut-down point
C. maximum point, which is the break-even point
D. minimum point, which is the shut-down point

The lowest point on a firm's short-run supply curve is at the
A. lowest point on the marginal cost curve
B. break-even pointC. shutdown point
D. most profitable output point

C. shutdown point

(this multiple choice question has been scrambled)

A firm will operate at that output where MC equals MR
A. only when it is maximizing its profits
B. only when it is minimizing its losses
C. neither when it is maximizing its profits nor minimizing its lossesD. both when it is maximizing its profits and when it is minimizing its losses

D. both when it is maximizing its profits and when it is minimizing its losses

(this multiple choice question has been scrambled)

When marginal cost is rising, but is less than average total cost, we are definitely below theA. break-even point
B. maximum profit point
C. shut-down point

Statement 1: Price is equal to total revenue divided by output. Statement 2: A firm never maximizes profits.A. Statement 1 is true, and statement 2 is false.
B. Statement 2 is true, and statement 1 is false.
C. Both statements are true.
D. Both statements are false.

A. Statement 1 is true, and statement 2 is false.

(this multiple choice question has been scrambled)

If a firm is producing a level of output at which that output's marginal cost is less than the price of the good, ______
A. it is producing too much to maximize its profits
B.it is probably maximizing its profitsC. higher profits could be obtained with increased production
d. none of the above

A firm will operate at that output at which MC = MR _______
A. only in the short runB. in both the short run and the long run
C. in neither the short run not the long run
D. only in the long run

B. in both the short run and the long run

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Statement 1: The firm's short-run supply curve runs up the marginal cost curve from the shutdown point to the break-even point.
Statement 2: The firm will not accept a price below the break-even pointin the short run.
A. Statement 2 is true, and statement 1 is false.B. Both statements are false.
C. Statement 1 is true, and statement 2 is false.
D. Both statements are true.

B. Both statements are false.

(this multiple choice question has been scrambled)

A business firm is in the short-run _______
A. occasionally
B. rarelyC. virtually all the time
D. never
E. most of the time

C. virtually all the time

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If the price is between the shutdown point and the break-even point, the firm is in there __________
A. short run making a profit
B. long run making a profit
C. long run taking a lossD. short run taking a loss

D. short run taking a loss

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The most efficient output of a firm is located _______
A. where MC = MRB. at the break-even point
C. at the shut-down point
D. when the vertical distance between AVC and ATC is at a maximum

B. at the break-even point

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Which one of these markets would definitely not be perfectly competetive?
A. The New York Stock Exchange
B. Foreign currency
C. WheatD. HDTVs

D. HDTV's

(this multiple choice question has been scrambled)

Perfect competition is _________
A. the only form of competition in the United States
B. the prevalent form of competition in the United StatesC. probably impossible to find
D. found occassionally

C. probably impossible to find

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Under perfect competition, _________
A. many firms have some influence over priceB. no firm has any influence over price
C. a few firms have influence over price

B. no firm has any influence over price

(this multiple choice question has been scrambled)

Under perfect competition, theere are ________
A. a few firms producing a differentiated product
B. a few firms producing an identical product
C. many firms producing a differentiated product.D. many firms producing an identical product

D. many firms producing an identical product

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The perfect competitor is __________
A. a price maker rather than a price takerB. a price taker rather than a price maker
C. neither a price maker or a price taker
D. a price taker and a price maker

B. a price taker rather than a price maker

(this multiple choice question has been scrambled)

***
The determination of whether two products are identical ________
A. is done by the government
B. is done by market researchC. takes place in the minds of the buyers
d is done by the sellers

Which statement about the perfect competitor is true?
a. She may charge a little below market price to get more customers.
b. She may charge a little above market price to imply that her product is superior.
c. She will always charge the market price.
d. None of these statements are true.

c. She will always charge the market price.

Each of the following is a characteristic of perfect competition except _______
A. many firmsB. varying prices charged by different firms
C. perfect mobility
D. identical products

B. varying prices charged by different firms

(this multiple choice question has been scrambled)

In the short run the perfect competitor will probably ______
A. take a loss or break evenB. make a profit or take a loss
C. make a profit or break even

B. make a profit or take a loss

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In the long run the perfect competitor will ______
A. make a profitB. break even
C. take a loss

B. break even

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Under perfect competition ______ profits are always zero in the long run.A. economic
B. neither accounting or economic
C. accounting
D. both economic and accounting

A. economic

(this multiple choice question has been scrambled)

Use the choices below to answer:
A. in the long run making a profit
B. in the long run breaking even
C. in the short run taking a lossD. in the short run making a profit
E. in the short run breaking even
F. in the long run taking a loss

D. in the short run making a profit

(this multiple choice question has been scrambled)

Use the choices below to answer:
A. in the short run taking a lossB. in the long run breaking even
C. in the long run taking a loss
D. in the short run breaking even
E. in the short run making a profit
F. in the long run making a profit

B. in the long run breaking even

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The perfect competitors demand and marginal revenue curves are ______
A. identical only in the short runB. always identical
C. never identical
D. identical only in the long run

B. always identical

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The most efficient output ______
A. is always equal to the most profitable output for the perfect competitor
B. is never equal to the most profitable output for the perfect competitor
C. is equal to the most profitable output for the perfect competitor only in the short runD. is equal to the most profitable output for othe perfect competitor only in the long run

D. is equal to the most profitable output for othe perfect competitor only in the long run

(this multiple choice question has been scrambled)

Use Figure 4 to answer
Total profit is ______A. the rectangle bounded by HGJI
B. is the rectangle bounded by EFGH
C. cannot be found on this graph
D. is the rectangle bounded by EFJL

A. the rectangle bounded by HGJI

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Output is ______
A. OLB. OM
C. OK
D. cannot be found on this graph

B. OM

(this multiple choice question has been scrambled)

Profit per unit is _____
A. FJ
B. MF
C. MG
D. MJE. GJ

E. GJ

(this multiple choice question has been scrambled)

The firm's most efficient output is ______
A. cannot be detwermined on this graphB. OL
C. OK
D. OM

B. OL

(this multiple choice question has been scrambled)

Statement 1: The advent of the Internet has brought "perfect knowledge" clsoer to reality.
Statement 2: The cost of businesses buying th eir supplies online is convenient, but they generally pay more than they would if they used customary channels.
A. Both statements are true.B. Statement 1 is true, and statement 2 is false.
C. Statement 2 is true, and statement 1 is false.
D. Both statements are false.

B. Statement 1 is true, and statement 2 is false.

(this multiple choice question has been scrambled)

Statement 1: No firm will stay in business more than one year if it is losing large sums of money.
Statement 2: Many dot-coms have lost money in the short run.
A. Statement 1 is true, and statement 2 is false.B. Statement 2 is true, and statement 1 is false.
C. Both statements are false.
D. Both statements are true.

B. Statement 2 is true, and statement 1 is false.

(this multiple choice question has been scrambled)

When an industry is in long-run equilibrium economic profits are ______ and ______ will be entering or leaving the industry.
A. positive; someB. zero; none
C. positive; none
D. zero; some

B. zero; none

(this multiple choice question has been scrambled)

If a perfectly competitive firm sells 10 units of output at a price of $10 per unit, its marginal revenue per unit is ________
A. $100
B. more than $1, but less than $10
C. more than $10, but less than $100
D. $1E. $10

E. $10

(this multiple choice question has been scrambled)

Under perfect competition there are so many firms that no one firm has any influence over ______

price

The determination that a product is identical takes place in ___________

the mind of the buyer

The perfect competitor's demand curve is a ________, the marginal revenue curve is a ________

perfectly elastic horizontal line; the same perfectly elastic horizontal line

A perfect competitor will never charge more than market price because ______; the perfect competitor woudl never charge less than market price because _______.

he wouldn't sell anything; it would be unnecessary since he could sell all he wanted at the market price.

In the short run the perfect competitor may make a _____ or take a _____; in the long run the perfect competitor will _____

profit, loss; break even

In a perfectly competitive industry, if firms are making profits _____, which will result in zero profits in the long run; if there are losses in the short run _____, resulting in zero profits (and losses) in the long run.

new firms enter the industry; some firms will leave the industry

The perfect competitor operates at the _____ point of her average total cost curve in the long run.

minimum

If the firms in a competitive industry are earning profits, in the long run new firms will _____, but if most firms are losing money, then in the long run some of the firms will _____.